American Home emerges from Chapter 11
By Clint Engel -- Furniture Today, March 29, 2010
ALBUQUERQUE, N.M. —
Retailer American Home emerged from Chapter 11 bankruptcy protection last week after the court closed the case.
The former Top 100 company filed for protection in November 2008, owing its largest industry creditors more than $3.3 million. A reorganization plan was approved by the court in July and American has been operating under that plan since September, said Ted Leveque, chief operating officer, even though the official emergence didn't come until this past week.
“For some of our resources, it was important to see that close date,” he said. “We're moving forward in a positive way and very appreciative of the support we've had from our vendors.”
Under the reorganization plan, unsecured creditors will be paid $1.3 million — $500,000 up front and the rest coming in quarterly installments over two years.
American Home projects annual sales in its first year out of Chapter 11 protection of $27.5 million to $30 million, a bit lower than an earlier projection of $30 million to $31 million, Leveque said.
Kenton Van Harten, a partner in American Home owner Hancock Park Associates, a private equity investment firm, remains president and CEO. Key suppliers included GuildCraft of California, Lane, Broyhill, Hillcraft, Sealy, Simmons and Tempur-Pedic.
The company, which operated as many as a dozen stores in 2007, has since trimmed down to three locations following sales and liquidations of stores, including all six Arizona showrooms. Its remaining stores are in New Mexico — a 100,000-square-foot flagship in Albuquerque, an 80,000-square-foot store in Farmington and a 40,000-square-foot store in Santa Fe.
“We are thrilled that we have completed our reorganization and the court has ordered the case closed,” Leveque said in a release.
“We want to thank all of our partners in the industry who helped us make it through these though times. We now look forward to the longer-term success of the company and to those who have supported us.”
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American Home emerges from Chapter 11
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